The ASX fell 76 points to close at 7333 (1.0%) after trying valiantly to rally at lunch, giving up the ghost as the US futures markets turned south. Banks weighed heavily with CBA down 1.5% NAB off 1.2% and MQG falling 3.7% in sympathy with Goldman Sachs. The Big Bank Basket fell to $178.20. Insurers were relatively unchanged despite 10-year yields hitting 2%. Fund managers also on the nose with MFG down 0.9%, PNI down 4.1% and ASX off 2.1%. Healthcare in casualty as CSL fell below the SPP price down 1.2%, RHC down 1.8%, RMD off 4.4% and FPH down 3.1%. Industrials also falling although less aggressively. WES fell 1.0%, TLS down 1.6%, TCL off 1.5% and RWC down 4.0%. Tech falling again as Nasdaq fell hard, APT down 2.2%, XRO down 2.4% and the AllTech Index off 1.7%. MP1 was a casualty today of a business update crashing 16.2%. Miners staggered as lithium ran out of puff, PLS down 3.9%, AKE down 6.9% on a broker, iron ore miners were off with FMG falling 1.5% and BHP hanging in ahead of the crucial vote. Energy stocks rallying hard as the oil price continues to hold firm. STO up 1.8% and WPL up 0.9%. In corporate news, BRN announced a US patent rising 14.5%, HUB up 2.1% on a FUM update. In economic news, the WestpacMelbourne Institute Index of Consumer Sentiment fell by 2.0% to 102.2 in January from 104.3 in December. Asian markets weaker with Japan down 2.4%, HK managed to stay flat and China off 0.6%.

MAJOR MOVERS:

  • Winners: BRN, ADO, BOE, EHL, APX, LKE, PSI
  • Losers: MP1, IHL, TPW, NVX, ERA, AKE, GLN, TLX
  • Positive sectors: Oil.
  • Negative sectors: Everything else.
  • Hi 7399 Lo 7326
  • Iron ore futures up in Singapore on stimulus hopes from China.
  • Big Bank Basket: Falls to $178.20(1.2%)
  • All-Tech index: Down 1.7%
  • Gold: Lower at $2522.
  • Bitcoin: Slightly lower to US$42349
  • Aussie Dollar:  Steady at 71.83c 10-YEAR YIELD: Rises to 2.00%.
  • Asian Markets: Japan down 0.1% Hong Kong down 0.1% and China up 1.1%.
  • US Futures: Dow futures down 180 NASDAQ futures down 140.

STOCKS ON THE MOVE

  • BRN +14.52% someone knew something yesterday as patent granted in US.
  • HVN +2.97% riding the JBH coat tails.
  • MNS +0.85% battery tech still in favour.
  • WBT +1.86% listed option expiry will bring fresh funds. Exercise price of 45c.
  • STO +1.84% BPT +2.07% oil price rises.
  • MIR +2.73% good investment results yesterday
  • PLY +18.14% Activision deal points to potential.
  • ARR +18.33% name helps.
  • CAE +21.67% ASX speeding ticket.
  • 3DP +12.50% quarterly report.
  • EGR +7.69% BAM facility update.
  • ASO +19.05% 163.5m @ 0.52% Ni and 0.016% Co fr4om 186.5m at Boomerang.
  • MP1 -16.15% results disappoint.
  • TPW -9.75% high growth tech under pressure.
  • NVX -9.70% profit taking.
  • AKE -6.89% broker downgrade.
  • PNV -4.89% rally unwound.
  • NCZ -12.04% profit taking.
  • DTL -5.26% rethink after 13% rise yesterday.
  • RBL -5.17% broker downgrades.
  • IPO of the Day – Nico Resources (NC1) +80.00% MLX spin off. Good start to ASX life.
  • Speculative stock of the Day: Bulletin Resources (BNR) up 26.09% before trading halt awaiting exploration update on Friday.

IN THE NEWS

  • Universal Store (UNI) first-half trading update. Total sales $108.3m, down 8.2% vs a year ago. Online sales up 52.5% over the year. Underlying gross profit margin (excluding online delivery costs) improved to 60.3% vs year-ago 59.7%. Added it had not experienced significant disruption to operations arising from COVID with shipping/container challenges now factored into its modelling and forecasting. Inventory in line with demand. Currently has 73 stores and is targeting a network of 100+ sites across Australia and NZ. The rate of store expansion exceeding Morgan’s forecasts. No comment on guidance.
  • BHP Q2 production numbers. Apart from iron ore and petroleum, numbers slightly missed consensus estimates for copper, met coal and energy coal. Iron ore and petroleum make up more than 60% of revenue, although BHP has discontinued its oil operations. Back in August, BHP announced it would sell its oil and gas operations to WPL. Half-year results are being prepared on the basis that the petroleum business is a discontinued operation. FY22 guidance was unchanged for iron ore, energy coal and nickel. Full-year total copper production is trending towards the low end of the guidance range, reflecting lower production guidance for Pampa Norte. Copper sits around 26% of revenue. Full-year unit cost guidance for WAIO, Escondida and NSWEC remains unchanged. The vote on collapsing its dual-listed structure is Thursday. The consolidation of BHP from a dual-listed company is expected to bump its weighting in the ASX 200 up to 10% from 6% currently if the plan is given the green light from shareholders. Half-year results are due on February 15.
  • BKI Investment (BKI) -said on Wednesday net operating profit after tax and before special investment revenue climbed 104% to $29.5m for the six-month period. BKI will deliver an interim ordinary dividend of 3.5¢ a share and an interim special dividend of 0.5¢ a share, both fully franked.
  • CIMIC Group (CIM) unit CPB Contractors has won a $350m contract from the NSW government for tunnelling works on the Western Harbour Tunnel.
  • Lynas Rare Earths (LYC) – quarterly sales revenue record. $202.7m in sales for the period compared to $121.6m in the preceding quarter.
  • Megaport (MP1) added 123 new customers and increased revenue by 8% in the December quarter. Monthly recurring revenue edged 7% higher.
  • HUB24 (HUB) – grown its assets to $68.3bn. Net inflows of $3.6bn in December quarter.

ECONOMIC NEWS/ BOND MARKETS

  • The Westpac-Melbourne Institute Index of Consumer Sentiment fell by 2.0% to 102.2 in January from 104.3 in December. A modest drop when compared to the first month of the Delta outbreak. A big jump in Omicron case number had led to expectations for a softer reading. WBC said consumers are becoming less bullish on the outlook for house prices.
  • Payroll jobs fell 0.1% in the four weeks to December 18, including a 0.7%dip in the final week of the data collection period, reflecting a season fall.

CV19 NEWS

  • Hong Kong is set to cull 1000 hamsters over a delta outbreak.Manuel not happy.
  • NZ looks to be delaying its border reopening due to omicron.

ASIAN MARKETS

  • Japanese LNG inventories slumped to a seven-month low as colder weather increased demand and Europe hoarded shipments.
  • Toyota fell hard today as the company cut production saying its 9m car goal very difficult to achieve.

US AND EUROPEAN NEWS

  • 5G is causing issues in the US with flights thrown into turmoil as US airlines worry about 5G towers near control towers.
  • Microsoft buy a game changer for its gaming division. Biggest all cash takeover in tech space.
  • Goldman Sachs has warned of wage inflation everywhere.
  • Fitch warns of a potential downgrade of Unilever after its bid for GSK consumer division.

And finally….

I’ve accidentally swallowed some Scrabble tiles. My next trip to the toilet could
spell disaster.

My wife’s back on the warpath again. She was up for making a sex
tape last night, and all I did was suggest we should hold auditions
for her part.

Clarence

XXXX